Kinder Morgan said that it would likely raise its dividend by 6%-10% next year, which by itself isn’t bad news. But, it comes after a 2015 in which the company boosted its dividend by a full 15%, and it raises questions about the reliability of management’s forecast of 10% annual dividend growth through 2020. Let’s jump into the numbers, starting with the good news first.
KMI actually beat analyst estimates, earning 19 cents per share vs. the consensus estimate of 18 cents. In a move that KMI stock investors have come to expect as a birthright, Kinder Morgan raised its dividend to 51 cents per share. That’s a 16% hike over last year and a 4% rise over just last quarter. Richard Kinder has proven to be one of the real “good guys” out there, reinvesting tens of millions of dollars of his own money into the company he founded. 2016 may be a sluggish year for KMI, but considering the stock currently pays a 6.5% dividend, we’re getting paid well to wait it out.